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HB 6290

AN ACT RELATING TO TAXATION -- WEALTH TAX

2025 Regular Session Introduced by Edith Ajello and 7 co-sponsors

Rhode Island imposes a 1% annual tax on residents' worldwide intangible wealth (cash, stocks, IP, and others) starting 2026; returns due 2027; administered by the DOR.

05/21/2025 Committee recommended measure be held for further study
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Bill Summary · HB 6290

Summary — HB 6290 (Wealth Tax)

Status: Referred to House Finance (introduced 04/30/2025); Committee recommended measure be held for further study (05/21/2025).
Note: the provided materials also include unrelated text from a different HB 6290 (Michigan industrial hemp amendments). This summary covers the Rhode Island “Wealth Tax” text introduced April 30, 2025.

Purpose

To create a new state-level annual “wealth tax” on the intangible (worldwide) wealth of Rhode Island residents and certain domiciled artificial persons, and to establish definitions, filing rules, and administration by the Rhode Island Department of Revenue.

Key provisions

  • Tax imposed: 1.0% annual tax on a resident’s “taxable worldwide wealth.” (44‑72‑2(a))
  • Effective date / timeline: Tax applies beginning January 1, 2026 (first tax year 2026); taxes are due in 2027. Returns report the prior calendar year. (44‑72‑2; 44‑72‑3 note)
  • Scope of tax base:
    • “Worldwide wealth” = fair market value of all intangible assets (financial and nonfinancial) owned or controlled by a resident, worldwide. (44‑72‑1(16))
    • “Financial intangible assets” specifically include cash and cash equivalents (explicitly including cryptocurrency), annuities, bonds, mutual funds, stocks, options, futures, commodities contracts, units of ownership in subchapter K and S entities, and similar investments. (44‑72‑1(7))
    • “Nonfinancial intangible assets” include trademarks, patents, copyrights, trade secrets, goodwill/reputation, favorable contracts, licenses, noncompete agreements, private service contracts, athletic/sports agreements, and similar intangible property. (44‑72‑1(9))
    • “Taxable worldwide wealth” excludes the fair market value of intangible property expressly exempted elsewhere in the chapter (text truncated).
  • Residency rules:
    • Natural persons are residents if domiciled in RI during the tax year, or if not domiciled here but maintained a place of abode and were physically present in RI more than 183 days in the tax year. (44‑72‑1(15))
    • Artificial persons (corporations, LLCs, trusts, partnerships, etc.) are residents if domiciled in Rhode Island (businesses: principal place of direction/management; others: place of organization). (44‑72‑1(5) & (15)(i))
  • Trusts and ownership:
    • Grantor trusts (for federal purposes) are attributed to the individual treated as owner for the wealth tax to the extent they include intangible assets. Non‑grantor trusts may be attributed to a grantor if the transfer is treated as an incomplete gift under federal rules. Transfers to minors can remain attributed to a resident under specified conditions. (44‑72‑2(e)–(f))
    • Trustees are not taxed on trust assets by virtue of being trustee unless they are beneficiaries or hold general powers of appointment. (44‑72‑2(d))
  • Administration and compliance:
    • Returns to be filed on department-prescribed forms by April 15 (reporting the immediately preceding calendar year). (44‑72‑3)
    • All funds collected are to be deposited pursuant to chapter requirements. (44‑72‑2(g))
    • Definitions supplied for valuation (fair market value), ownership/control, and related terms to guide application and enforcement. (44‑72‑1)

Who is affected

  • High-net-worth Rhode Island residents with significant intangible assets — especially concentrated in investments, securities, ownership shares (S and K entities), trusts, intellectual property, contracts, and goodwill.
  • Domestic artificial persons (businesses, trusts, estates) domiciled in RI.
  • Tax professionals, estate planners, and the Department of Revenue (administration, valuation, auditing).

Potential impacts and considerations

  • Compliance complexity: valuation of nonfinancial intangibles and worldwide assets, determining “control” and attribution rules, and valuing interests in private entities and trusts.
  • Tax planning responses likely (residency changes, asset transfers, trust/account structuring, contested valuations).
  • Administrative burden on the Department of Revenue to develop forms, valuation guidance, enforcement mechanisms, and international/other‑state coordination.
  • Economic/behavioral effects could include migration of high‑wealth individuals or entities and litigation over state taxing authority / valuation methodology (not addressed in the bill text provided).

Legislative status & next steps

  • Introduced April 30, 2025; referred to House Finance. Committee scheduled hearings and, on 05/21/2025, recommended the measure be held for further study. Additional committee work, amendments, or drafting of implementing rules would be expected if reconsidered.

Compiled from official sources — confirm details with the bill’s official record.

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